SoundCloud for Artists: Prices, Costs, Royalties & Hidden Fees
Choosing SoundCloud As Your Music Distributor
Article updated: 2023-01-23
I'm an independent musician using music distribution services. In the last article I compared 3 of the main music distributors: Distrokid, Tunecore and Cdbaby. This is a direct follow-up to my previous article, adding SoundCloud to the table.
SoundCloud is a digital distributor since 2019. Their music distribution service is called SoundCloud for Artists since 2022, it has been rebranded from SoundCloud Repost. It allows you to monetize and send your tracks to music streaming platforms like Spotify, YouTube Music, Apple Music, Amazon Music, Deezer, etc..
In this article I will be going over everything you should know about SoundCloud for Artists, including prices, costs, royalties and hidden fees. At the end I will be adding a realistic payout comparaison that includes the 3 distributors covered in my previous article and a new SoundCloud payout.
Table of Contents
SoundCloud For Artists
SoundCloud's Free Plan
The free plan is called SoundCloud Next.
You can upload up to 3 hours of your music for free on SoundCloud. But, unless you choose one of the monthly plans, you wont be able to monetize your music.
Your music will only be on SoundCloud with the free plan, and you wont make any money from people listening to it. Unless you add a "buy link" to your track, which allows you to redirect the listener to your website.
SoundCloud's Monthly Plans
SoundCloud has a total of 3 plans you can choose from, 1 free one (see above) and 2 monthly paid ones.
The first monthly one is called SoundCloud Next Plus. For a flat fee of $2.50 per month, SoundCloud will send your music to streaming platforms like Spotify and allows you to enable monetization on the tracks you have on SoundCloud itself.
SoundCloud Next Plus will cost you $30 per year.
Note: The 3 hours track limit still applies in SoundCloud Next Plus.
The second monthly one is called SoundCloud Next Pro. For a flat fee of $5.50 (this is a promotional 50% off price) per month, you will be able to upload unlimited tracks.
SoundCloud Next Pro will cost you $66 the first year and $132 the years after that ($11 per month).
So yes, like in my previous article about the Distrokid and Tunecore unlimited plans; SoundCloud also has one.
Choosing any of the 2 monthly plans, SoundCloud will monetize your music on streaming platforms and on the website itself. You will get 80% of the revenue.
The best thing about this, is that it also includes the YouTube Content ID. Both SoundCloud Plus and Pro will get your music in the YouTube CID and allow you a total (per-track) control over claims right from your dashboard.
This part is a game changer and very important for the payout comparaison. Read carefully.
SoundCloud is a little bit out-of-box with a special system of fan-powered royalties.
With any other distributor, you can't monetize on SoundCloud, only choosing a monthly plan will allow you to do so.
Here is how the royalties work:
If someone listen to your music and only your music: you get a 100% share of their paid subscription.
If someone listen to your music and other artists music: you get a certain % based on how long that person has listened to you.
Example: User A spent 1h listening to your music, 1h listening to other musicians. You get a 50% share.
Example 2: User B spent 1h listening to your music, 9h listening to other musiciens. You get a 10% share (1h of a total of 1h+9h=10h is 10%).
SoundCloud's Hidden Fees
SoundCloud will take 20% of everything you earn.
You will keep 80% of the revenue.
There are no exceptions, or any other fees, on top of this 80/20 split in addition to the price that you already pay monthly for their service.
SoundCloud also has a publishing service, where no cut percentage is specified. You can apply by filling a form. I don't know what kind of "deal" you get, because they do not disclose this information anywhere.
Payout Comparaison: SoundCloud vs Distrokid, Tunecore & Cdbaby
"Let's say that your average payout per stream is $0.003, that means that you get roughly $0.01 every 3 streams.
This is your first year and your first album. You got a combined 30,000 streams on all platforms (excluding socials), making your payout $100. And you got a combined 30,000 streams on social platforms, adding another $100.
Your total payout is $200"
These were the final results for each distributor, after all fees were deducted:
Cdbaby (promo): $156.01
In this exact same scenario, here is what you get from SoundCloud:
You choose Next Plus ($2.50/month): you get 200-(2.5*12)-(200*0.2)=$130
You choose Next Pro ($5.50/month): you get 200-(5.5*12)-(200*0.2)=$94
Note: 200*0.2=40, this is the 80/20 revenue split.
Hold on, where are the streams from SoundCloud itself?
Here we are in the important part, about the royalties that you should have read carefully, because I marked it as such.
Repeating this: No other distributor can monetize your music on SoundCloud but SoundCloud itself.
You got a total of 60k streams that don't include your SoundCloud streams. The amount you get on SoundCloud is probably pretty high, I will take a random 10k streams as reference, which is lower then expected, but you'll see the results with just that amount.
You have now 10k extra streams, worth $33 that nobody outside of SoundCloud itself can monetize, because it's on their own platform, with their own custom fan royalty shares.
Note: The average per stream with their custom system is still the same as the competition. This number includes the % they take, so 10k streams are worth roughly $33.
This is what you actually get now:
You choose Next Plus: you get 130+33=$163
You choose Next Pro: you get 94+33=$127
The streams you get on the platform itself are very important for the final payout, you can see that only 10k streams added $33 already, 20k streams would add $66, 30k streams would add $99.
Does SoundCloud Takedown Your Music?
Based on a few comments about this that I found. SoundCloud did not takedown the music of people that cancelled their yearly plans.
So, unlike Tunecore and Distrokid; SoundCloud does not pull your music off the streaming platforms, if you stop paying.
Choosing SoundCloud for music distribution or not will depend on the amount of streams you have on it. A high amount of streams on the platform will make it better then the competition, a low amount will make it worse.